5 Stocks To Invest In According To Stephen Errico’s Locust Wood Capital

3. American Tower Corporation (NYSE:AMT)

Locust Wood Capital’s Stake Value: $72.9 million
Percentage of Locust Wood Capital’s 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 55

American Tower Corporation (NYSE:AMT) is a Boston-based real estate investment trust (REIT) that operates as an owner of wireless and broadcast communications infrastructure in several countries worldwide.

By the end of the second quarter of 2021, 55 hedge funds out of the 873 tracked by Insider Monkey held stakes in American Tower Corporation (NYSE:AMT) worth roughly $4.7 billion. Of these fund’s, Charles Akre’s Akre Capital Management is a leading shareholder in the company, with over 7 million shares worth more than $1.89 million.

On October 12, Wolfe Research analyst Andrew Rosivach assumed coverage of American Tower Corporation (NYSE:AMT) with a Peer Perform rating and $271 price target.

According to the 13F Filings for the third quarter of 2021, Stephen Errico holds 275,022 shares of American Tower Corporation (NYSE:AMT), worth more than $72.9 million, accounting for 3.96% of his investment firm’s portfolio value.

Qualivian Investment Partners, in its Q3 2021 investor letter, mentioned American Tower Corporation (NYSE:AMT). Here is what the fund had to say:

“What Attracts Us 

Superior Business:
• High barriers to entry resulting from low bargaining power of suppliers (land owners) and customers (wireless companies). Neither can find reasonable substitutes for existing cell towers. Combined with low possibility of disruption, this results in a business oligopoly and pricing power.
• Stable business with consistent high returns on equity, low maintenance capital required, and strong cash generation.
− Ten-year, non-cancelable contracts with built in pricing escalators and high renewal rates
− 1%-2% churn

Superior Reinvestment Opportunities:
• Strong growth for the foreseeable future due to increasing demand for wireless data usage, resulting in wireless carriers Capex equipment spend on existing and new towers.
• Low maintenance capital expenditure requirements; most of capital expenditure is for growth

Superior Management / Capital Allocation:
• Capital reinvested back in business has had returns well above cost of capital
• Company has purchased stock opportunistically…” (Click here to see the full text)